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5 Things to Know About the PenFed Power Cash Rewards Card

Aug. 29, 2019
Cash Back Credit Cards, Credit Cards, Low Interest and No Fee Credit Cards
5 Things to Know about the PenFed Power Cash Rewards Visa Signature® Card
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As one of the nation’s largest credit unions, Pentagon Federal — aka PenFed — serves over 1.7 million members worldwide, offering an array of financial products, including credit cards, auto loans and mortgages.

If you’ve ever considered adding a flat-rate cash back rewards card to your wallet, PenFed offers one with a twist: The PenFed Power Cash Rewards Visa Signature® Card earns either 1.5% or 2% back on all purchases, depending on your eligibility.

Here are five things to know about this $0-annual-fee card.

» MORE: NerdWallet’s best PenFed credit cards

1. To be eligible to apply, you must be a PenFed member

Because PenFed is a credit union, you have to be a member to apply for its financial products. Anyone can join, but that does mean there are a few extra steps before you can apply for the PenFed Power Cash Rewards Visa Signature® Card.

You’ll have to fill out an application and make a $5 deposit into a PenFed savings account to set up your membership.

» MORE: NerdWallet’s best credit union credit cards

2. You have to qualify for that 2% rate

On its own, the PenFed Power Cash Rewards Visa Signature® Card earns a respectable 1.5% on all purchases. That’s pretty much the standard for flat-rate cash-back cards nowadays. But why settle for average? PenFed members who are also part of the Honors Advantage program are eligible for an additional 0.5% back, bringing their cash-back earnings rate up to an attention-grabbing 2%.

To qualify for Honors Advantage and snag 2% cash-back rewards on all your spending, you must have and maintain a PenFed Access America Checking Account or meet the military service criteria — active duty, reserve, honorably discharged or retired.

There’s no minimum or maximum amount of cash back you’re eligible to receive. You can redeem for a statement credit or as a deposit into a PenFed account. You can also transfer your cash back to another financial institution.

» MORE: NerdWallet’s best cash-back credit cards

3. The card offers introductory incentives

Any time there’s an opportunity to save money on existing debt, that’s a good thing. And the PenFed Power Cash Rewards Visa Signature® Card does double-duty as both a cash-back card and a potential balance transfer card. It offers an intro 0% promotional rate for 12 months on transfers made now through March 31, 2020, and then the ongoing APR of 11.74% - 17.99% Variable APR.

Be aware that there is a 3% balance transfer fee. Make sure the math works in your favor before moving any debt to this card.

The card also features a decent sign-up bonus: $100 bonus after spending $1,500 in purchase transactions within the first 90 days of account opening.

» MORE: See the best credit card bonus offers available now

4. Membership comes with discounts

Whether you were already a PenFed member or you’re joining just to get the PenFed Power Cash Rewards Visa Signature® Card, there are some perks attached. There’s a sizeable list of discounts for PenFed members, including savings on home and auto insurance, car rentals and more.

» MORE: How to choose a cash-back card

5. Save money by opting for electronic statements

Taking a pass on mailed paper statements is better for the environment — and with the PenFed Power Cash Rewards Visa Signature® Card, it’s also better for your wallet. Sign up for free electronic statements and you’ll avoid having to shell out a $1 fee for each paper statement.

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